California Voters Decide on One-Time Billionaire Wealth Tax

California voters will decide the fate of Proposition 40 during the November 3, 2026, midterm elections. The measure proposes a one-time 5% tax on the net worth of approximately 250 residents with assets exceeding $1 billion. Organizers estimate the tax would generate $100 billion to fund healthcare, education, and food assistance, while offsetting federal cuts from the 2025 Republican tax bill.

Proposition 40 has sparked a divide among the state's ultra-wealthy. Opponents, including Peter Thiel and Eric Schmidt, spent over $340 million to defeat the measure, warning it would trigger a billionaire exodus. Some migration has already occurred; former Uber CEO Travis Kalanick relocated to Austin, and Google cofounders Larry Page and Sergey Brin moved business entities to Florida and Nevada. However, proponents cite data from Massachusetts and Washington to argue that high-earners rarely flee such taxes, noting only six billionaires left California before the January 1, 2026, deadline.

Some tech leaders have pledged to remain in the state despite their reservations. Nvidia CEO Jensen Huang characterized the ability to pay high taxes as a privilege. Palmer Luckey, cofounder of Anduril, stated he is staying to fight for California, though he expressed concern that the tax could cause other companies to leave the state.